Verizon: A Leading Wireless Corporation
With an estimated 147,200,000 wireless users in the United States, Verizon is one of the biggest corporations in the sector. AT& T Mobility Company, a nearby rival, has 136,500,000 customers (Singh, 2014). In June 2000, the company was established as a result of the union of GTE and Bell Atlantic Corporation (Birch & David, 2006). Due to its distinctive goods, Verizon has enjoyed success for the past 17 years. The excellent performance of the business results from its Corporate Social Responsibility that involves management of electronic wastes, an activity that conserves the environment. Besides, pioneering 4G LTE network in 2010 boosted the company. Finally, its unique brand, significant market share, and excellent customer service increase its stakeholders' confidence.
Business Theorist and Theory
Russell L Ackoff, a prominent organization theorist who was born in the year 1919 came up with the organizational theory and operations research. According to Shafritz (2016), the organization is a dynamic and exciting field of the administration that identifies the patterns and structures that are used to maximize productivity and efficiency as well as solve problems. It can either be classical, non-classical, modern structural or economic organizational theory (Shafritz, 2016).
Government Regulations
Globally, governments regulate the telecommunication industry to protect consumers and other service providers. For instance, in the US, the Federal Communication Commission (FCC) sets up most of the laws to control pricing, quality of products or services and limit foreign investments (Sheffer, 2015). In line with regulating intrastate prices, it sets range in which each company should charge. Finally, the FCC gives subsidies to all the telecommunication companies through Universal Services Fund to aid in the development of services in remote areas. According to Grote (2006), the rate-of-return regulation that sets low incentives for the company to minimize its operating cost or improves its production cost.
Effects of the Regulations on Verizon Company
According to Grote (2006), the rate-of-return regulation helps the company to maintain a distinctively low market risk as it makes the company independent in the market. The pricing law contributes to maintaining acceptable and profitable prices thus doing away with unhealthy competition among the companies. On the other hand, the pricing control can be a great barrier to the company as it may reduce the profit margins when the pricing levels reduce. Finally, the subsidies offered by FCC in conjunction with Universal Services Fund may help the company to grow as it aims at providing services to the people living in the rural areas thus the customer number increases.
How to Overcome the Regulations
The modern structural organizational theory gives the organization room to overcome the laws. It is concerned with hierarchical levels, the horizontal differential between organizational units and vertical differentiation. The horizontal differential between organizational units helps the company to develop ideas and skills in the business. Verizon can easily overcome the regulations by switching from the products with strict rules to another less regulated product without changing its functionality. For instance, if the company is using wireless means of communication, which is heavily regulated, the company can opt to use another method of communication that is less expensive and regulated. For the company to thrive with minimal regulation hiccups, the company should endeavor to fulfill the set rules so that it can prevent the collision with the government that may lead to usage of large amounts of money.
References
Birch, M., & David, F. R. (2006). Verizon Communications, Inc.—2004. Strategic Management: Concepts and Cases, 354.
Grote. D, (2006). Regulations in the US telecommunication sector and its impact on risk. The centre for market and public Organization University of Bristol.
Shafritz. J, et.al (2016). Classics of organizational theories ed.8
Sheffer. R, (2015). Investors should be aware of regulations in the telecom industry. An investor’s guide to the US telecom industry PART 10 OF 20. http://marketrealist.com/2015/01/investors-aware-regulations-telecom-industry/.
Singh, P. N. (2014). Verizon acquired Vodafone: Analysis of market reaction. Industry 42(3), 163-182.
